Bill Text: IL HB0701 | 2013-2014 | 98th General Assembly | Amended

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Bill Title: Amends the Environmental Protection Act. Makes a technical change in a Section concerning the short title.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB0701 Detail]

Download: Illinois-2013-HB0701-Amended.html

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Rep. Keith Farnham

Filed: 3/27/2013

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AMENDMENT TO HOUSE BILL 701
AMENDMENT NO. ______. Amend House Bill 701 by replacing
everything after the enacting clause with the following:
"Section 5. The Environmental Protection Act is amended by
changing Sections 19.2 and 19.3 as follows:
(415 ILCS 5/19.2) (from Ch. 111 1/2, par. 1019.2)
Sec. 19.2. As used in this Title, unless the context
clearly requires otherwise:
(a) "Agency" means the Illinois Environmental Protection
Agency.
(b) "Fund" means the Water Revolving Fund created pursuant
to this Title, consisting of the Water Pollution Control Loan
Program, the Public Water Supply Loan Program, and the Loan
Support Program.
(c) "Loan" means a loan made from the Water Pollution
Control Loan Program or the Public Water Supply Loan Program to

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an eligible applicant as a result of a contractual agreement
between the Agency and such applicant.
(d) "Construction" means any one or more of the following
which is undertaken for a public purpose: preliminary planning
to determine the feasibility of the treatment works or public
water supply, engineering, architectural, legal, fiscal or
economic investigations or studies, surveys, designs, plans,
working drawings, specifications, procedures or other
necessary actions, erection, building, acquisition,
alteration, remodeling, improvement or extension of treatment
works or public water supplies, or the inspection or
supervision of any of the foregoing items. "Construction" also
includes implementation of source water quality protection
measures and establishment and implementation of wellhead
protection programs in accordance with Section 1452(k)(1) of
the federal Safe Drinking Water Act.
(e) "Intended use plan" means a plan which includes a
description of the short and long term goals and objectives of
the Water Pollution Control Loan Program and the Public Water
Supply Loan Program, project categories, discharge
requirements, terms of financial assistance and the loan
applicants to be served.
(f) "Treatment works" means any devices and systems owned
by a local government unit and used in the storage, treatment,
recycling, and reclamation of sewerage or industrial wastes of
a liquid nature, including intercepting sewers, outfall

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sewers, sewage collection systems, pumping power and other
equipment, and appurtenances; extensions, improvements,
remodeling, additions, and alterations thereof; elements
essential to provide a reliable recycled supply, such as
standby treatment units and clear well facilities; and any
works, including site acquisition of the land that will be an
integral part of the treatment process for wastewater
facilities.
(g) "Local government unit" means a county, municipality,
township, municipal or county sewerage or utility authority,
sanitary district, public water district, improvement
authority or any other political subdivision whose primary
purpose is to construct, operate and maintain wastewater
treatment facilities or public water supply facilities or both.
(h) "Privately owned community water supply" means:
(1) an investor-owned water utility, if under Illinois
Commerce Commission regulation and operating as a separate
and distinct water utility;
(2) a not-for-profit water corporation, if operating
specifically as a water utility; and
(3) a mutually owned or cooperatively owned community
water system, if operating as a separate water utility.
(i) "Maintenance" means any one or more of the following
activities that is undertaken for a public purpose aimed at
extending the useful life of the project: corrosion mitigation
or prevention; cathodic protection; prevention of structural

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degradation; or other activities necessary to extend the useful
life of the treatment works or public water supply.
(Source: P.A. 91-36, eff. 6-15-99; 91-52, eff. 6-30-99; 91-501,
eff. 8-13-99; 92-16, eff. 6-28-01.)
(415 ILCS 5/19.3) (from Ch. 111 1/2, par. 1019.3)
Sec. 19.3. Water Revolving Fund.
(a) There is hereby created within the State Treasury a
Water Revolving Fund, consisting of 3 interest-bearing special
programs to be known as the Water Pollution Control Loan
Program, the Public Water Supply Loan Program, and the Loan
Support Program, which shall be used and administered by the
Agency.
(b) The Water Pollution Control Loan Program shall be used
and administered by the Agency to provide assistance for the
following purposes:
(1) to accept and retain funds from grant awards,
appropriations, transfers, and payments of interest and
principal;
(2) to make direct loans at or below market interest
rates and to provide additional subsidization, including,
but not limited to, forgiveness of principal, negative
interest rates, and grants, to any eligible local
government unit to finance the construction or maintenance
of wastewater treatments works and projects that fulfill
federal State Revolving Fund grant requirements for a green

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project reserve;
(2.5) with respect to funds provided under the American
Recovery and Reinvestment Act of 2009:
(A) to make direct loans at or below market
interest rates to any eligible local government unit
and to provide additional subsidization to any
eligible local government unit, including, but not
limited to, forgiveness of principal, negative
interest rates, and grants;
(B) to make direct loans at or below market
interest rates to any eligible local government unit to
buy or refinance debt obligations for treatment works
incurred on or after October 1, 2008; and
(C) to provide additional subsidization,
including, but not limited to, forgiveness of
principal, negative interest rates, and grants for
treatment works incurred on or after October 1, 2008;
(3) to make direct loans at or below market interest
rates and to provide additional subsidization, including,
but not limited to, forgiveness of principal, negative
interest rates, and grants, to any eligible local
government unit to buy or refinance debt obligations for
costs incurred after March 7, 1985, for the construction or
maintenance of wastewater treatment works, and projects
that fulfill federal State Revolving Fund grant
requirements for a green project reserve;

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(3.5) to make direct loans at or below market interest
rates for the implementation of a management program
established under Section 319 of the Federal Water
Pollution Control Act, as amended;
(4) to guarantee or purchase insurance for local
obligations where such action would improve credit market
access or reduce interest rates;
(5) as a source of revenue or security for the payment
of principal and interest on revenue or general obligation
bonds issued by the State or any political subdivision or
instrumentality thereof, if the proceeds of such bonds will
be deposited in the Fund;
(6) to finance the reasonable costs incurred by the
Agency in the administration of the Fund; and
(7) to transfer funds to the Public Water Supply Loan
Program.
(c) The Loan Support Program shall be used and administered
by the Agency for the following purposes:
(1) to accept and retain funds from grant awards and
appropriations;
(2) to finance the reasonable costs incurred by the
Agency in the administration of the Fund, including
activities under Title III of this Act, including the
administration of the State construction grant program;
(3) to transfer funds to the Water Pollution Control
Loan Program and the Public Water Supply Loan Program;

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(4) to accept and retain a portion of the loan
repayments;
(5) to finance the development of the low interest loan
programs for water pollution control and public water
supply projects;
(6) to finance the reasonable costs incurred by the
Agency to provide technical assistance for public water
supplies; and
(7) to finance the reasonable costs incurred by the
Agency for public water system supervision programs, to
administer or provide for technical assistance through
source water protection programs, to develop and implement
a capacity development strategy, to delineate and assess
source water protection areas, and for an operator
certification program in accordance with Section 1452 of
the federal Safe Drinking Water Act.
(d) The Public Water Supply Loan Program shall be used and
administered by the Agency to provide assistance to local
government units and privately owned community water supplies
for public water supplies for the following public purposes:
(1) to accept and retain funds from grant awards,
appropriations, transfers, and payments of interest and
principal;
(2) to make direct loans at or below market interest
rates and to provide additional subsidization, including,
but not limited to, forgiveness of principal, negative

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interest rates, and grants, to any eligible local
government unit or to any eligible privately owned
community water supply to finance the construction or
maintenance of water supplies and projects that fulfill
federal State Revolving Fund grant requirements for a green
project reserve;
(2.5) with respect to funds provided under the American
Recovery and Reinvestment Act of 2009:
(A) to make direct loans at or below market
interest rates to any eligible local government unit or
to any eligible privately owned community water
supply, and to provide additional subsidization to any
eligible local government unit or to any eligible
privately owned community water supply, including, but
not limited to, forgiveness of principal, negative
interest rates, and grants;
(B) to buy or refinance the debt obligation of a
local government unit for costs incurred on or after
October 1, 2008; and
(C) to provide additional subsidization,
including, but not limited to, forgiveness of
principal, negative interest rates, and grants for a
local government unit for costs incurred on or after
October 1, 2008;
(3) to make direct loans at or below market interest
rates and to provide additional subsidization, including,

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but not limited to, forgiveness of principal, negative
interest rates, and grants, to any eligible local
government unit or to any eligible privately owned
community water supply to buy or refinance debt obligations
for costs incurred on or after July 17, 1997, for the
construction or maintenance of water supplies and projects
that fulfill federal State Revolving Fund requirements for
a green project reserve;
(4) to guarantee local obligations where such action
would improve credit market access or reduce interest
rates;
(5) as a source of revenue or security for the payment
of principal and interest on revenue or general obligation
bonds issued by the State or any political subdivision or
instrumentality thereof, if the proceeds of such bonds will
be deposited into the Fund; and
(6) to transfer funds to the Water Pollution Control
Loan Program.
(e) The Agency is designated as the administering agency of
the Fund. The Agency shall submit to the Regional Administrator
of the United States Environmental Protection Agency an
intended use plan which outlines the proposed use of funds
available to the State. The Agency shall take all actions
necessary to secure to the State the benefits of the federal
Water Pollution Control Act and the federal Safe Drinking Water
Act, as now or hereafter amended.

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(f) The Agency shall have the power to enter into
intergovernmental agreements with the federal government or
the State, or any instrumentality thereof, for purposes of
capitalizing the Water Revolving Fund. Moneys on deposit in the
Water Revolving Fund may be used for the creation of reserve
funds or pledged funds that secure the obligations of repayment
of loans made pursuant to this Section. For the purpose of
obtaining capital for deposit into the Water Revolving Fund,
the Agency may also enter into agreements with financial
institutions and other persons for the purpose of selling loans
and developing a secondary market for such loans. The Agency
shall have the power to create and establish such reserve funds
and accounts as may be necessary or desirable to accomplish its
purposes under this subsection and to allocate its available
moneys into such funds and accounts. Investment earnings on
moneys held in the Water Revolving Fund, including any reserve
fund or pledged fund, shall be deposited into the Water
Revolving Fund.
(g) To ensure the effective use of funds, produce the
highest quality new treatment works, and extend the useful life
of existing treatment works, the Agency shall establish
contractor requirements on all construction and maintenance
projects. These requirements shall be developed in concert with
engineers, architects, contractors, unions, and industry
recognized partners, such as the National Association of
Corrosion Engineers and the Society for Protective Coatings.

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The requirements shall mandate conformity to the Society of
Protective Coatings certifications QP1, QP2, QP3, or any
combination of those certifications, as applicable to the scope
of the treatment works projects. The Agency shall make
compliance with these requirements, including the mandatory
certifications, a condition of any party receiving funds for
construction or maintenance under this Title.
(Source: P.A. 96-8, eff. 4-28-09; 96-917, eff. 6-9-10.)".